Bitcoin Mining Rig Rental Scheme Fails

Bitcoin Mining Rig Rental Scheme Fails
The Kodak KashMiner computer was never officially licensed by Kodak.

(CCM) — A company which promised that customers renting its Bitcoin-mining computers would more than double their money in two years has collapsed after being labelled a scam, the BBC is reporting.

The U.S. Securities and Exchange Commission (SEC) has barred the rental scheme from being launched.

Spotlite USA showed off its Kodak KashMiner computer on the official Kodak stand at the CES technology show in Las Vegas in January and offered to rent them out for $3,400 for a period of two years. Its promotional material said that it would generate Bitcoins worth $375 per month, which would belong to the person renting the device, the report says.

The company also said that it planned to install hundreds of the machines at Kodak's headquarters, in order to benefit from cheap electricity from a generator at the site.

But Kodak has told the BBC that it never licensed the product, and none have ever been installed in its headquarters. Critics have also pointed out that the promotional material did not take in to account the fact that Bitcoins become increasingly difficult to generate over time. "There is no way your magical Kodak miner will make the same $375 every month," economist Saifedean Ammous said in the report.

Halston Mikail, Spotlite's chief executive, says that it has abandoned the rental scheme and the company now plans to install and operate the machines in Iceland to generate Bitcoins for itself.

Image: © aztekphoto -